The creation and reversal of an investment deduction can result in a low-value asset.
Practical example:
An entrepreneur has set up an investment deduction for the purchase of a filing cabinet in 2024 (expected acquisition costs of € 1,200 (net) × 50% = € 600). He purchases the filing cabinet on 3.1.26 for a gross price of € 1,428. He calculates as follows:
| Gross amount |
1.428,00 € |
| less sales tax (input tax) |
228,00 € |
| Net amount |
1.200,00 € |
| less investment deduction |
600,00 € |
| Relevant acquisition costs |
600,00 € |
Consequence: The acquisition costs do not exceed the applicable threshold of € 800, meaning that the entrepreneur may immediately depreciate the filing cabinet as a low-value asset.
Only movable fixed assets may be treated as low-value assets. Non-movable assets, such as parts of buildings, extensions and additions, paving, store fittings and intangible assets may not be included. Exception: Software that costs no more than €800 net of VAT is treated as a movable (tangible) asset. Only assets that can be used independently may be depreciated immediately. This excludes assets that can only be used together with other assets.
Important: Software products are generally classified as intangible assets, meaning that they cannot be classified as low-value assets. However, R 5.5 para. 1 EStR allows an exception for trivial software: software up to the threshold value of € 800 is classified as a tangible asset.